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Prudential – news and analysis

Prudential has launched a new fund for higher-risk investors as part of a new risk-managed range. The updated PruFolio Risk Managed fund range consists of 14 funds- five passive, five active and five smoothed funds – and includes a new fund, the Risk Managed PruFund 5. The funds’ investment objective will no longer specify a maximum […]

Prudential has lost an appeal after the Financial Ombudsman Service ruled that sending out forms by post caused a client delays in taking three of his pensions. In November 2016 the client, referred to in the FOS decision as Mr B, said he wanted to take all three of his pensions with Prudential at the […]

18th June 201812:48 pm

Prudential – Company overview

Prudential is a British life insurance and financial services company headquartered in London, UK, founded in London in May 1848.

In August 2017, it was announced that Prudential was set to embrace vertical integration as it planned to merge its asset manager M&G with its wider UK and Europe business. The new business was called M&G Prudential, and would manage more than £332bn of assets as it stands. The firm was looking to generate a £250m cash injection from shareholders for investment, and was expecting to make £145m a year cost savings by 2022. It was also announced that Prudential UK and Europe chief executive John Foley was lead the new business.

In the same month, Money Marketing reported that Prudential was resuming its adviser recruitment drive with plans to hire up to 30 new advisers by the end of 2017. Advice arm Prudential Financial Planning began in 2012 with 20 advisers. By 2015 it had 210 advisers, and the firm announced it was targeting a further 40 with a hiring campaign. In August 2017 Prudential had around 300 restricted advisers, putting in roughly 11th place by size, in line with the likes of Wesleyan Financial Services and bigger than the On-Line Partnership and legacy Caerus network.

By November 2017 Prudential was sounding out potential buyers as it prepared a four-way break-up of its £10bn annuity book in the UK, according to reports. The insurance giant told buyers that four chunks of annuity book valued at between £2bn and £3bn each will be offered.

Capita was replaced as the pensions administrator of M&G Prudential after an open market tender in January 2018. The administration of more than four million life and pensions contracts at M&G Prudential will move from Capita to Diligenta, an FCA-regulated subsidiary of Tata Consultancy Services on 31 July 2018.

Prudential must compensate a customer whose transfer value was significantly reduced after a meeting with an in-house adviser. According to a Financial Ombudsman Service decision, the customer, called Mr L, was told on 2 March 2017 that the transfer value for his pension policy was £141,981. He met with a Prudential adviser, who recommended he […]

Prudential is planning to double earnings in Asia by upping investment in technology. In an interview with Bloomberg, chief executive of the UK insurer’s Asia arm Nic Nicandrou says Prudential is looking to invest more than $400m (£281m) in areas like automation and online line sales, 20 per cent more than initially budgeted. Nicandrou adds […]

Prudential is to demerge its UK and European business M&G Prudential, resulting in two separately listed companies. After the merger, shareholders will hold interests in both Prudential and M&G Prudential. The division of the group will see Prudential focus outside the UK on the US and Asian markets. Prudential also announced today the sale of […]

Capita has been replaced as the pensions administrator of M&G Prudential after an open market tender. The administration of more than four million life and pensions contracts at M&G Prudential will move from Capita to Diligenta, the FCA-regulated subsidiary of Tata Consultancy Services on 31 July. According to documents published a decade ago, the value […]

Fixed-term annuity provider Primetime Retirement has hired Russell Warwick, who helped create Prudential’s financial planning business. Warwick, who has worked in the pensions industry for more than 30 years, has been appointed managing director of sales and marketing at the company. Primetime Retirement is a subsidiary of Key Retirement. Warwick’s most recent position at Prudential […]

The Pensions Ombudsman has upheld a complaint against Prudential, which changed a client’s fund without consent. In the case, Mrs F complains Prudential incorrectly switched her with-profits holdings into a cash fund when she reached her normal retirement date at 60. Mrs F’s normal retirement date was 9 November 2015 and throughout the life of […]

Prudential is sounding out potential buyers as it prepares a four-way break-up of its £10bn annuity book in the UK, according to reports. The insurance giant has told buyers in the last few weeks that four chunks of annuity book valued at between £2bn and £3bn each will be offered. To attract a range of […]

Prudential is resuming its adviser recruitment drive with plans to hire up to thirty new advisers by the end of the year. Advice arm Prudential Financial Planning began in 2012 with 20 advisers. By 2015 it had 210 advisers, and the firm announced it was targeting a further 40 with a hiring campaign. Currently, Prudential […]

Prudential is set to embrace vertical integration as it plans to merge its asset manager M&G with its wider UK and Europe business. The new business will be called M&G Prudential, and would manage more than £332bn of assets as it stands. The firm is looking to generate a £250m cash injection from shareholders for […]

More on Prudential

Client claimed Prudential transferred money out of the wrong funds in his pension Prudential has won a case at The Pensions Ombudsman after a client claimed that the provider transferred assets out of the wrong funds in his pension. The client, referred to as Mr L, said he had intended for Prudential to transfer £15,168 from […]

Macari brought in to drive strategy with non-tied advisers at Prudential Prudential has hired former Aegon platform strategy director Lou Macari to work on its distribution strategy with advisers. Macari left Aegon as it completed its acquisition of Cofunds in January. He had been with the provider for five years, and served a 12 year […]

Prudential has poached Aegon’s former chief financial officer Clare Bousfield to run its insurance business. Bousfield is set to join Prudential tomorrow but the appointment is still subject to regulatory approval . She spent six years at Aegon before leaving the provider in August. She had previously served as head of group internal audit at […]

Prudential is reportedly working on plans to cap the pay of fund managers at M&G after one fund manager took home £32m over two years. Sky News reports the insurance giant will limit pay at the asset management division, but says there are no details on what pay will be limited to or how a cap […]

Prudential UK & Europe chief executive Jackie Hunt is leaving the organisation after two years in the position. Hunt was appointed to the role in 2013 and succeeded Rob Devey, who left to join advice firm Towry. She was previously finance director at Standard Life. Prudential group investment director John Foley will become UK chief […]

Prudential has launched three multi-asset funds to add to its actively managed Dynamic Focused Portfolio range. The Dynamic Focused Portfolios will be formed of five low-cost products as the firm adds three new funds, joining the existing Managed Defensive and Cautious Managed Growth funds in the range. These existing funds have been renamed to fit the […]